Don't let lower volumes deter you from Top 75, says broker

by Donald Horne19 Jun 2013

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Don't let lower volumes deter you from Top 75, says broker

Lower funded volumes shouldn’t deter brokers from submitting for the CMP’s Top 75 list, says one broker, as it may indeed be a sign that they are actually strengthened their business model not weakened it.

“I don’t think you can just broker mortgages anymore to succeed in this business,” says Brent Parnell, principal broker with The Mortgage Centre, Vertuity Mortgage in Winnipeg. “You need to offer the extras if you want to compete with the banks, to keep your clients.”

Those extras and the revenue associated with them don’t necessarily add to a broker’s funded volume numbers. Still, they add up and many brokers have turned to diversification to grow overall revenue.

Parnell, who ranked 62 on CMP magazine’s Top 75 Broker list with $32.4 million in funded volume last year, admits that the changes in the refinancing rules at CMHC have provided additional challenges industry-wide. He’s no exception

“Every year, it seems things get a little tighter, a little tougher in this business,” Parnell told MortgageBrokerNews.ca. “You have to roll with the punches – like when the refis were tightened at CMHC; that definitely hurt. So we had to switch gears, start doing more purchase business. It definitely isn’t as easy as it used to be.”

As for the “extras” that brokers should offer, Parnell and his partners at the brokerage have taken the initiative to offer general insurance as a potential add-on for clients.

“It’s only been up and running for a year now,” he says, “but it is just one other way to help us stand out and add value for the client.

“Sure we do internet, but we are really Old School in our approach – building relationships one person at a time. Our methods seem to work, and we are where we want to be.”

CMP magazine is now calling for broker submissions for its ranking of Top 75 Brokers by funded volume for 2012. To be eligible, all the figures must be supplied by you, the broker/agent, via electronic survey – and that all deals must have been personally sourced and originated by you.

Sales figures must be broken down by the relevant lender, and should include a contact name and telephone number for each representative of those institutions. CMP reserves the right to contact them and the broker network to confirm figures.

The deadline for submissions closes on June 21.

Luckily for Parnell that MortgageBrokerNews.ca contacted him to do a story on the Top 75.

“Actually, we hadn’t tracked our numbers for the year until you called us,” laughs Parnell. “Just yesterday we totalled our numbers, and we will definitely send them in to enter the Top 75. Last year’s accolade we include on our website and include on our emails. It definitely is a plus for us.”

Like the Top 75, the Small Market Top 20 gives a tip of the hat to the accomplishments of mortgage professionals in markets with a 2012 average home price of $290,000 or less.

As the gap between home values in Canada’s smaller centres and those in Toronto and other major cities continues to grow, the Small Market Top 20 is the best way to acknowledge the funded-volume success of those brokers.

The criteria to qualify for the Top 20 includes being in a market that is a CREA-identified region, municipality or centre, and to brokers who did a minimum 80 per cent of their deals in such a market where the average home price is at or under $290,000.

Small brokers will be automatically considered for the Top 75 list – and their volumes must be personally sourced and originated.

Calling 290k and less the "small market" is almost laughable considering the average Saint John NB home price is almost half of that figure. I believe the rest of the province is about that same, maybe a little more. Ironically enough I think that there are a couple of brokers here in NB that would probably hit that list if they submitted their volumes. It's certainly a lot of work to try and write 30 mil in mortgages though. The average NB home price may be 165k, however brokers tend to get the lower end of that average for the most part I believe.